Q Biomed Inc. (QBIO), a biotechnology company specializing in the development of pharmaceutical products, has released its financial results for the third quarter ended February 28, 2023. The key highlights of the report include a decrease in sales revenues for their Strontium89 product, a reduction in operating expenses, and ongoing net losses.
The company reported no sales revenues for the three-month period compared to $75,000 during the same period in 2022 due to fewer vials of Strontium89 being sold. The cost of sales during this period was approximately $3,000, down from $74,000 in Q3 2022.
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Reduced Operating Expenses
One of the main reasons for reduced operating expenses in Q3 2023 was the lower burn and scaled-back operations due to lack of available capital. Q Biomed Inc. experienced approximately $62,000 less in marketing costs and $465,000 less in legal and other professional services costs during this period compared to Q3 2022.
Interest expenses for Q3 2023 amounted to $277,000, a decrease from $414,000 in Q3 2022. The reduction in interest expenses was attributed to changes in factors such as interest rates, coupon interest rates, debt discount accretion, and other related expenses.
Ongoing Net Losses
During Q3 2023, Q Biomed Inc. recorded a net loss of approximately $0.7 million, whereas in Q3 2022, the net loss amounted to $2.3 million. The company’s management expects to continue incurring net losses for the foreseeable future due to the need to establish a broader pipeline of assets, increase expenditure on research and development, and implement other aspects of their business plan.
Financial Challenges and Future Outlook
As of February 28, 2023, Q Biomed Inc. had approximately $23,000 in cash. The company’s ability to continue as a going concern largely depends on obtaining adequate capital to fund operating losses until it can generate sufficient cash flow from operations to cover operating costs and obligations. If Q Biomed Inc. is unable to secure the necessary funds, it could be forced to cease operations.
To address the ongoing financial challenges, Q Biomed Inc. plans to seek equity and debt financing. However, there is no guarantee that additional funding will be available on acceptable terms, or at all. The company’s management acknowledges that there is substantial doubt about its ability to continue as a going concern within one year after the financial statements were issued.
Despite the challenges outlined in the quarterly report, Q Biomed Inc. remains committed to developing innovative pharmaceutical products to address significant unmet medical needs while seeking viable solutions to improve its overall financial position and performance.
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